Ask Question
21 August, 00:48

Cullumber Inc has the following information related to an item in its ending inventory. Acer Top has a cost of $31, a replacement cost of $30, a net realizable value of $33, and a normal profit margin of $4. What is the final lower-of-cost-or-market inventory value for Acer Top?

+5
Answers (1)
  1. 21 August, 04:13
    0
    final lower-of-cost-or-market inventory value for Acer Top is $29

    Explanation:

    given data

    Acer Top cost = $31

    replacement cost = $30

    net realizable value = $33

    normal profit margin = $4

    to find out

    final lower-of-cost-or-market inventory value for Acer Top

    solution

    we get here market value that is

    market value = net realizable value - Normal profit margin ... 1

    market value = $33 - $4 = $29

    and as we know Ending inventory is Lower of cost or market inventory

    so here Lower of $31 or $29 is $29

    final lower-of-cost-or-market inventory value for Acer Top is $29
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cullumber Inc has the following information related to an item in its ending inventory. Acer Top has a cost of $31, a replacement cost of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers